Monday, October 7, 2002

Brad Penn^® Lubricants realizes 37% increase

in volume through 3^rd Quarter FY 2002

American Refining Group, Inc. manufacturer of quality Brad Penn^® Lubricants announced that its lubricant volume grew 37% through the 3^rd quarter of fiscal year 2002.  In addition, Brad Penn^® has added 27 new distributors in the Northeast and Southeastern markets over a 24 month period.

“Our strategy is to sign quality, full line lubricant distributors.  We have established a strong network of distributors in the Northeast but still have some geographic areas where we need distribution.  In addition, we are aggressively looking for distributors in the Midwest and Southeastern states,” stated Dick Glady, Director of Sales and Marketing.

Currently Brad Penn^® Lubricants are shipped from its Bradford, PA refinery as far away as Montreal, Indiana, Tennessee, and North Carolina.

“Tradition, consistent quality and value price points are what Brad Penn^® Lubricants is all about.  We market our lubricants without programs and have taken the cost of programs out of the price of our quality lubricants.  Since 1881, the Bradford, PA refinery has refined 100% Pennsylvania Grade Crude Oil and today is the only refiner capable of making that claim.  The refinery is the oldest, continuously operating refinery in the world.  Due to the consistency of the feedstock, the quality process can be traced from the wellhead to many of our finished products providing Brad Penn^® distributors with quality lubricants at a value price point,” stated Dick Glady.

Pennsylvania Grade Crude Oil is unique, thermally stable paraffinic crude that has a naturally high viscosity index, free of asphalt constituents and only trace amounts of sulfur and nitrogen are present in the crude.  Since its discovery in 1859, lubricants refined from Pennsylvania Grade Crude Oil have been the choice of manufacturers and consumers throughout the world.  “In addition, we produce both solvent refined and hydrotreated Pennsylvania Grade base oils for use in our formulations,” added Glady.

The Bradford, PA refinery was the first refinery in the U.S.A. to become ISO 9002 certified.  The refinery stretches over 2 ½ miles and contains a fully automated state-of-the-art packaging facility.

In 1997, American Refining Group, Inc. purchased the Kendall/Amalie refinery located in Bradford, PA from Witco Corporation.  As a result of the sale of the Kendall^® and Amalie^® brands to a third party, a new name was given to the products produced at the site-Brad Penn^® Premium Pennsylvania Grade Lubricants.

American Refining Group, Inc. is a privately held, ISO 9002 certified refinery.  ARG is a manufacturer and blender of quality Brad Penn^® and Gulf^® branded lubricants, packager of private label lubricants and a premier refiner of petroleum specialty products.